Search icone
Search and publish your papers
Our Guarantee
We guarantee quality.
Find out more!

Why I Think Markets are Efficient

Or download with : a doc exchange

About the author

 
Level
Advanced
Study
finance
School/University
Duquesne...

About the document

Published date
Language
documents in English
Format
Word
Type
presentations
Pages
2 pages
Level
Advanced
Accessed
7 times
Validated by
Committee Oboolo.com
0 Comment
Rate this document
  1. Introduction
  2. The efficient market hypothesis
  3. Imagining that there is no efficiency whatsoever
  4. Arguments against market efficiency
  5. Conclusion
  6. Sources

Market efficiency, discovered by Eugene Fama, is the theory that at any given time, the prices of the market fully reflect all available information on a particular stock or and/or the market. Therefore no individual investor has any advantage over any other as all information is shared by everyone. This is known as the efficient market hypothesis, and is very controversial. I assert that markets are efficient in a semi strong form, and argue against people that believe otherwise.

[...] Next let's assume that markets are strongly efficient, homogenous information is readily available to everyone, investors are on an equal playing field, and prices are where they should be. The capital asset pricing model works very well in this case. Risk can be assessed accurately and investors are able to determine how much return they require for their risk. Through these two examples it is clear how important a role market efficiency plays on the capital asset pricing model. In my opinion, market efficiency is a real thing in the semi-strong form. [...]


[...] Why I Think Markets are Efficient Market efficiency, discovered by Eugene Fama, is the theory that at any given time, the prices of the market fully reflect all available information on a particular stock or and/or the market. Therefore no individual investor has any advantage over any other as all information is shared by everyone. This is known as the efficient market hypothesis, and is very controversial. I assert that markets are efficient in a semi strong form, and argue against people that believe otherwise. [...]

Similar documents you may be interested in reading.

How to use rumours as a marketing tool?

 Business & market   |  Marketing   |  Thesis   |  01/12/2007   |   .pdf   |   68 pages

"The national influence on the European integration"

 Politics & international   |  International affairs   |  Presentation   |  01/15/2009   |   .doc   |   7 pages

Top sold for finance

The case of H&M and Inditex

 Economics & finance   |  Finance   |  Case study   |  09/29/2010   |   .pdf   |   5 pages